Interlocking Directorates as a Trust Substitute: The Case of the Italian Non-Life Insurance Industry
University of Teramo Department of Communication Working Paper No. 1-2006
24 Pages Posted: 19 Dec 2013
Date Written: December 1, 2006
This paper investigates the market structure of the insurance business by analyzing the (interlock) linkages among companies created by their directors. We focus on the non-life business since this is a sector relatively closed with respect to the competition with other financial activities; an absence of industry competition cannot thus be compensated by other agents. We apply the graph theory to describe the network and the principal component analysis to summarize information and verify the correlation between direct interlocking and companies' market shares.
Keywords: Non-life insurance, antitrust, competition, interlocking directorates, network economics
JEL Classification: D40, G10, G20, K20, L40, L50
Suggested Citation: Suggested Citation